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Breakouttrading

Trading 101: The benefits of hard closesIntroduction: In the world of technical analysis, traders are constantly searching for new and innovative methods to gain an edge in the market. One such technique that has gained popularity in recent years is the use of "hard closes." In this idea, we will delve into what hard closes are, why they are considered superior to conventional crossover methods, and the benefits and practical applications of incorporating hard closes into your trading strategy. Understanding Hard Closes: A "hard close" is a unique approach to analyzing price movements in financial markets. Unlike traditional moving average crossovers, which rely on the intersection of two moving averages, hard closes focus on the closing price of an asset. In essence, a hard close is an inflexible criterion that triggers a signal when the closing and opening price of an asset meets specific predetermined conditions. How to Spot Hard Closes: Let's say we have a level of resistance, and we are waiting for the price to break out so that we can long it, an up candle must open above the level of resistance, as well as close above it (because it also has to be an up candle). Similarly, if we are looking for a support breakout, we need a down candle to open below the level of support and close as a down candle. Hard closes can be used on both horizontal levels and trendlines. Why Hard Closes Are Better: Reduced Noise: Hard closes eliminate a significant amount of noise present in conventional crossover methods. By focusing solely on opening and closing prices, they filter out intra-period fluctuations as well as fakeouts and provide a cleaner and more precise signal. Benefits of Hard Closes: Risk Management: By reducing false signals, hard closes help traders make more informed decisions. This, in turn, enhances risk management strategies, preventing traders from entering ill-timed trades. Versatility: Hard closes can be applied to various assets and timeframes as well as different kinds of levels, making them suitable for day traders, swing traders, and long-term investors alike. Practical Uses of Hard Closes: Trend Confirmation: Hard closes can be used to confirm the strength and direction of an existing trend. A bullish hard close, for example, can reinforce the conviction of a bullish trend. Entry and Exit Points: Traders can employ hard closes to identify precise entry and exit points for their trades. This approach minimizes the guesswork involved in trading decisions. Filtering Signals: Hard closes can be integrated into existing trading strategies to filter out less reliable signals, enhancing the overall effectiveness of the strategy. In conclusion, hard closes represent a powerful and innovative approach to technical analysis that offers several advantages over conventional crossover methods. Their ability to reduce noise, improve accuracy, and adapt to different trading styles makes them a valuable addition to any trader's toolkit. Whether you are a seasoned professional or a novice trader, consider exploring the potential of hard closes to enhance your trading strategy and gain a competitive edge in the financial markets.
Education
by AutomatedTradingAlgorithms
3
BALRAMPURCHIN BREAKOUT ANALYSIS 14 SEPBALRAMPURCHIN is a performance based stock. and if we look at the chart we can see it has given the breakout after a nice consolidation of more than 1 year. it’s expected to give a nice target of R:R :: 1:3. Reason : Bullish trangle breakout. Support at the VWAP. RSI is in Bullish zone, Trendline break of RSI. Successful breakout after 14 months High Volume trade last 4 days. successful breakout of the strong Resistance Zone. Now it will act as support Price > EMAs Verdict : Highly Bullish R:R :: 1:3 Plan of Action: Buy: 431.25 Stoploss: 406 Target: 500
NSE:BALRAMCHINLong
by finnova_
2
Box sections, support and resistance, breakout tradinghello? Hello traders! If you "Follow" us, you can always get new information quickly. Please also click “Boost”. Have a good day. ------------------------------------- When trading, I always think about when the price will rise. And, by buying just before it goes up, you want to be in the profit zone as soon as you buy. To make these trades, you must be familiar with day trading. However, most people do not like to engage in day trading. This is where problems always arise. If you buy at a price that is too low and there is no sign of it going up, you will get tired and lose interest in trading. If this situation continues, you will eventually leave all investment markets and will not even be able to get opportunities. Therefore, even if you incur losses, you must continue to engage in day trading whenever you have time to maintain your sense of day trading. Additionally, you need to develop the know-how necessary for day trading. Some people may be thinking that there is no need for day trading since they will be investing with the goal of short-term trading. However, if you do not have an eye for day trading, 1. The average unit price is formed at a higher price than expected due to poor timing of purchase. 2. Buy at a price that is too low and miss out on higher opportunities. Cases like 1 and 2 may occur. Then, I started trading because the market seemed to be on the upswing, but I think it only amplified my negative thoughts about trading as I entered a pullback period. Therefore, depending on the market atmosphere, there are separate periods for day trading, short-term trading, and mid- to long-term trading. The current period is a period of day trading and short-term trading. In order to transition from this period to a mid- to long-term trading period, one must go through a period of great volatility. Therefore, as mentioned earlier, if you start trading when the current market atmosphere is more heightened, you may suffer large losses when a period of great volatility begins. Fortunately, if large volatility leads to an uptick, there is potential for profit from short-term trading. However, we cannot rule out the possibility that it will eventually turn into a loss because there is a possibility that the price will not respond due to expectations that it will rise further in the future. In any case, as the current day trading period is likely to continue for a while, it is highly likely that more individual investors will begin trading in the future. Since this is the time when companies or whales that operate large capital realize profits, once profit realization ends, it is likely to lead to great volatility, that is, a large decline. At the same time, companies and whales that were unable to buy during the period of great volatility will buy, and eventually a full-fledged upward trend will begin. Therefore, we need to be careful when trading to survive this trend. Because you never know when and how the market will change, you should always make profits or prevent increased losses through short trading, or day trading. So, the current period corresponds to the period of day trading. (USDT 1D chart) Currently, the flow of USDT is not very good. This is because large candles on the USDT chart mean that there is a large flow of funds, which means that many transactions are taking place or there is a lot of movement of funds. When these candles change to the previous candles, it is expected that the coin market will end the day trading period and enter a period of great volatility. -------------------------------------------------- --------------- As I mentioned earlier, in order to buy right before it rises and be in the profit zone as soon as you buy, you must eventually make a breakout trade. In order to make a breakout trade, you need to know how support and resistance points and sections are formed at the current price position. Then, if support is confirmed in the formed sideways section, you should start buying from then on until it breaks upward through the high point of the sideways section or box section. Otherwise, if you buy after seeing support after an upward breakout, it may be too late for day trading. A big rise often begins after a decline. This movement is commonly called a pull back. Even though the price has fallen, the number of people selling decreases, which means that there are not many people willing to sell anymore, so when the price rises, the number of people selling decreases, so this type of movement is often seen. There are prerequisites for this. Before the above movement can be seen, there must be a certain number of candles with long upper tails. This is because a candle with a long upper tail can be formed to confirm the movement of people trying to sell. Well, I won't go into more detail because I've heard this story often elsewhere. (BTCUSD 1D chart) As mentioned earlier, in order to make a breakout trade, there must be a certain section or point of support and resistance. Looking at the 1D chart in the example, can you see a certain range or support and resistance lows? If so, you need to check whether you receive support or resistance at that section or at the support and resistance lows. thus, You can think of a box section like the chart above. These box sections or sideways sections are different for each person, so it is impossible to say which is right or wrong. All you have to do is create a trading strategy that suits you within the set range and trade accordingly to earn profits. The box section I decided on is as follows. HA-Low and HA-High indicators are indicators created for trading. Therefore, it is utilized when starting or ending a transaction. Use this to form a box section, start buying when support appears in this box section, and continue buying until the box section breaks upward. Therefore, as shown above, candles that pass the HA-Low and HA-High indicators form a box consisting of low and high points. If you look at the chart in the current example, you can see that the base of the box is toward the bottom of the box. Therefore, in order to turn upward, it is expected that the movement will begin as the HA-Low or HA-High indicator moves and forms a new one by shaking it up and down. The key to breakout trading is at what point must the breakout trade begin. However, these points vary depending on your investment style, that is, your trading strategy. Therefore, in order to apply your own trading strategy to a box section created by someone else, you must know the criteria for selecting the box section. However, most of the time, such information is not provided. However, this can only be inferred from the pictures drawn on the chart. You need to be careful because making the inferences your own and creating a trading strategy based on them is like building a castle on sand. Therefore, in order to make a breakout trade, you must check the following: 1. Is there a certain range or support and resistance range visible at the point where the current price is located? 2. If case 1 applies, how far are the other support and resistance areas from that box range? If there are support and resistance points or sections within the box section or just above the box section, you must check them because even if you break above the box section, you may not make much profit or may even incur a loss. The section in the chart box above is 25120.76-28184.89. And above that, there is support and resistance at 28809.72. Therefore, if you are satisfied with the profit in the 28184.89-28809.72 range, you can proceed with the transaction. If not, it is recommended to hold the transaction. Ultimately, trading is done to make a profit, so if the visible profit range is small, it is better not to proceed with the trade at all. 3. Is it possible to take a stop loss when there is no support at the support and resistance points within the box section and the price falls below the bottom of the box section? You should think that falling below the box range means you have provisionally defined that a further decline, that is, a sharp decline, may occur. Therefore, you should be able to take a stop loss when the price falls below the bottom of the box section. If you think the stop loss amount is too large and you cannot stop the loss, it is better not to trade at all. Check conditions 1-3 above, and if everything is satisfactory, you can check whether you are supported at the support and resistance points, create a buying strategy, and proceed with the purchase. Otherwise, if you buy immediately when the box section breaks upward, the psychological burden will increase and it may turn into a wrong transaction, so you need to build up know-how through a lot of experience. The most important thing in my chart is the MS-Signal indicator. If the price stays above this indicator and the MS-Signal indicator turns into a bullish sign, it means that there is a high possibility of an uptrend and an upward move. Therefore, in order to trade more safely, you can start buying when the MS-Signal indicator rises above the MS-Signal indicator and the MS-Signal indicator switches to an upward sign and shows support. However, it is not easy to actually proceed like this. You need to think about how you will proceed with the purchase. I will take the time to explain this when I have the chance next time. -------------------------------------------------- ------------------------------------------- ** All explanations are for reference only and do not guarantee profit or loss in investment. ** Trading volume is displayed as a candle body based on 10EMA. How to display (in order from darkest to darkest) More than 3 times the trading volume of 10EMA > 2.5 times > 2.0 times > 1.25 times > Trading volume below 10EMA ** Even if you know other people’s know-how, it takes a considerable amount of time to make it your own. ** This chart was created using my know-how. ---------------------------------
COINBASE:BTCUSDEducation
by readCrypto
Is BTC's Price Breakout Sustainable? A Questionable Tone Introduction: The recent surge in Bitcoin's price has left many traders wondering whether this breakout is sustainable or just a temporary spike. With two significant events, namely the inflation call and Franklin Templeton's pursuit of a Bitcoin ETF spot, it becomes crucial for traders to pause and assess the situation before making any impulsive decisions. In this article, we will delve into these factors and provide a questionable perspective on the current state of Bitcoin's price, urging traders to exercise caution and seek clarity before the next potential breakout. Inflation Call and its Impact: The inflation call has sparked debates concerning its potential influence on Bitcoin's price. Some argue that the rising inflation rates could drive investors towards cryptocurrencies as a hedge against traditional fiat currencies. However, it is essential to remember that Bitcoin's value is also influenced by various other factors, such as market sentiment, global economic conditions, and regulatory developments. Therefore, it is questionable whether the inflation call alone can sustain Bitcoin's upward trajectory in the long term. Franklin Templeton Seeks Bitcoin ETF Spot: The recent news of Franklin Templeton's interest in a Bitcoin ETF spot has undoubtedly generated excitement among traders. The potential approval of a Bitcoin ETF could open doors for institutional investors, providing a significant boost to the cryptocurrency market. However, it is important to approach this news with a level of skepticism. Regulatory hurdles and uncertainties surrounding the approval process may delay or even hinder the launch of a Bitcoin ETF. Thus, while this development holds promise, it is crucial to wait for clarity before expecting a substantial impact on Bitcoin's price. A Call-to-Action: Pause for BTC until Clarity for the Next Breakout: Given the uncertain nature of these recent events and their potential impact on Bitcoin's price, it is prudent for traders to pause and assess the situation before making any significant moves. Rather than succumbing to FOMO (Fear Of Missing Out) or hastily jumping on the bandwagon, it is essential to seek clarity and gather more information about the inflation call and the potential Bitcoin ETF. Traders are encouraged to closely monitor market developments, regulatory updates, and expert opinions to gain a comprehensive understanding of Bitcoin's future trajectory. Engaging in thorough research and analysis will enable traders to make informed decisions based on a solid foundation of knowledge rather than relying solely on speculative factors. Conclusion: While the recent price breakout of Bitcoin has undoubtedly caught the attention of traders, it is crucial to approach this surge with a questionable tone. The impact of the inflation call and Franklin Templeton's interest in a Bitcoin ETF spot remains uncertain, and traders must exercise caution before making any impulsive decisions. By pausing and seeking clarity for the next potential breakout, traders can position themselves more strategically and make informed choices based on a thorough understanding of the market dynamics.
BITSTAMP:BTCUSD
by bryandowningqln
BluetonaFX - EURGBP Triangle Break LONG IdeaHi Traders! There is a potential triangle break to the upside on the EURGBP 3H chart. The price action looks very bullish; we have highlighted the downside rejection candle to take it above the 20 EMA. The market has also been swinging higher with high lows and higher highs. We are looking for further momentum to take us above the resistance area around 0.86064 and 0.86110; we must break this area and stay above the 20 EMA to continue upwards. Trade safely and responsibly. BluetonaFX
Long
by BluetonaFX
3
Morgan Stanley Upgrades Tesla Stock - Time to Go Long on TSLA!I'm thrilled to share with you that Tesla (TSLA) has just received a significant boost in its stock rating, courtesy of the renowned financial institution, Morgan Stanley! This upgrade has undoubtedly caught the attention of many investors, and I believe it's time for us to seize this opportunity and go long on TSLA! Morgan Stanley's recent stock upgrade for Tesla is a clear indication of their confidence in the company's prospects. This positive development has already started to impact the market, with TSLA's stock showing signs of an upward trajectory. As savvy traders, we know that such upgrades often attract increased attention and can lead to substantial gains. So, let's not miss out on this potentially lucrative opportunity! Tesla has consistently demonstrated its innovation and dominance in the electric vehicle industry. With their groundbreaking technology, impressive product lineup, and global presence, Tesla is poised for remarkable growth in the coming years. Morgan Stanley's upgrade serves as a validation of Tesla's strong fundamentals and its ability to deliver on its promises. Now, you might be wondering, "What's the next step?" Well, my fellow traders, it's time to take action! I encourage you to consider going long on TSLA and take advantage of this positive momentum. By going long, we can potentially benefit from the expected rise in Tesla's stock price and maximize our returns. Remember, investing in the stock market always carries some level of risk, but with careful analysis and a well-informed approach, we can minimize those risks and increase our chances of success. Conduct your due diligence, review the latest market trends, and consider consulting with your financial advisor to make an informed decision that aligns with your investment goals. So, let's ride the wave of optimism surrounding Tesla's stock and capitalize on this exciting upgrade from Morgan Stanley. Together, we can make the most of this opportunity and aim for profitable outcomes! Wishing you happy trading and abundant success!
NASDAQ:TSLALong
by bryandowningqln
Microsoft (MSFT) -> Retesting The All Time HighMy name is Philip, I am a German swing-trader with 4+ years of trading experience and I only trade stocks , crypto , options and indices 🖥️ I only focus on the higher timeframes because this allows me to massively capitalize on the major market swings and cycles without getting caught up in the short term noise. This is how you build real long term wealth! In today's anaylsis I want to take a look at the bigger picture on Microsoft. Looking at the higher timeframe you can see that Microsoft stock is once again retesting the previous all time high at the $340 resistance level. Furthermore Microsoft is also creating an ascending triangle formation so I would love to see another bearish rejection and then the longer term bullish breakout. - - - - - - - - - - - - - - - - - - - - I know that this is a quite simple trading approach but over the past 4 years I've realized that simplicity and consistency are much more important than any trading strategy. Keep the long term vision🫡
NASDAQ:MSFTShort
by basictradingtv
29
All time hight • Value in the chart is similar to Mount Everest in series. • Left shoulder start building from July 2021 to September 2021. • Left shoulder High 2300-2370 life time. • Header and shoulder pattern breakout in the dalmiabharth chart. This level, which peaked in July 2021 and acts as resistance, descends to the 1840 level (50 SMA Weakly chart). Right shoulder encounters resistance between 2280 and 2300, with a downward (100sma) support level of 1860–1870. Header formation from 2300 level to 1200–1220 (200sma) level was accomplished over a two-year period. Today's stock closed above this level, confirming that the stock has broken out at the 2290-2300 level and that it has sustained all-time high levels. • This pattern's target is 3300, with a stop loss of 2190 points below this level as the baseline. No recommendation for buy and sell Take your own analysis
NSE:DALBHARATLong
by investigationofchart
Trend Analysis on VARROC ENGINEERINGBased on price action , here is the breakout of candle of varroc engineering with good strength as it is already took multiple attempts to breakout but could not make it . Here is another attempt and this time it has greater chance of breakout and we can expect 15-20% within 2months. As trading always comes with risk factor , don't forget to put your stoploss as well . Entry , first target and Stoploss is already mention in the chart and trade accordingly.
NSE:VARROCLong
by Trade_With_Stanlee
SuryarosniStock have strength and good fundamentals Qtr sales up by 2% Qtr net profit up 168% Qtr EPS up by 167 % Entry level----816 stop loss ------728 Breakout trading implementation: 1. **Identifying New Trends:** Breakout trading helps traders identify the beginning of new trends by focusing on price levels where an asset breaks out of its historical trading range. 2. **Volatility Indicator:** Breakouts often occur when there's increased volatility in the market. Monitoring breakouts can provide insights into shifts in market sentiment and potential price movements. 3. **Entry Points:** Breakout points serve as potential entry points for traders looking to ride the momentum of a newly established trend. Buying on a breakout can capture the early stages of a price movement. 4. **Confirmation of Strength:** Successful breakouts indicate the strength of a trend. If an asset breaks out with high volume and follows through with sustained price movement, it suggests a strong trend in that direction. 5. **Avoiding False Signals:** Breakout strategies often include using indicators or confirmation signals to avoid false breakouts. This can enhance the accuracy of trade decisions. 6. **Defined Risk and Reward:** Breakout trading allows for setting clear stop-loss levels below the breakout point, which helps manage risk. Traders can also calculate potential profits based on the distance between the breakout point and a projected target. 7. **Adaptable to Various Markets:** Breakout trading can be applied to various markets, including stocks, forex, commodities, and cryptocurrencies. The concept remains consistent across different assets. 8. **Flexibility:** Traders can adapt breakout strategies to their preferred timeframes, whether they are day traders, swing traders, or long-term investors. 9. **Liquidity Opportunities:** Breakout points are often associated with increased trading volume, which can provide better liquidity for executing trades. 10. **Risk vs. Reward Assessment:** Traders can evaluate the potential risk of a trade (stop-loss) against the potential reward (target price), aiding in decision-making and portfolio management. 11. **Psychological Advantage:** Successful breakout trades can boost a trader's confidence and discipline, reinforcing the effectiveness of their strategy. 12. **Market Events:** Breakouts can occur around significant market events such as earnings reports, economic data releases, or geopolitical developments, offering traders opportunities to capitalize on sudden price movements. Remember, while breakout trading offers potential advantages, it also carries risks. False breakouts and market reversals can lead to losses. Successful implementation requires a solid understanding of technical analysis, risk management, and the ability to adapt to changing market conditions.
NSE:SURYAROSNILong
by UnknownUnicorn24085472
1